The euro was little changed at $1.17, near its strongest level in two weeks, as US-Europe tensions appeared to ease temporarily. US President Donald Trump said he would refrain from imposing tariffs on goods from European countries opposing his plan to take control of Greenland. He added that a “framework for a future deal” had been agreed following talks with NATO Secretary-General Mark Rutte, though no details of the arrangement were disclosed. The announcement provided some relief to markets, but geopolitical uncertainty remains elevated. Denmark has ruled out negotiations on ceding control of Greenland, and Danish Prime Minister Mette Frederiksen reiterated that while security and investment matters can be discussed, sovereignty is non-negotiable. On the policy front, signs of a resilient Eurozone economy and inflation near target continue to support expectations that the European Central Bank is likely to keep interest rates on hold for the foreseeable future.
